Financial planning for businesses is as must as they are for individuals. Most business owners easily accept that financial planners can provide valuable expertise to help them achieve their business goals.
However, not as many people realize that financial planners can also serve an essential role in helping individuals organize their finances and establish their long-term goals regarding savings or retirement.
Being a financial planner is an attractive career choice as it is a flexible position where there’s a lot of opportunity for independent work.
Professionals with a strategic mindset, result-oriented personality, and planning skills find this position highly rewarding.
Especially as it allows them to have a visible impact and witness growth in people’s lives and businesses.
But your workday as a financial planner might be different depending on whether you choose to work for a business or individuals.
Let’s see the differences.
Financial Planning for Businesses
Financial planning for businesses is more complex than for individuals.
As a financial planner working with business owners, your responsibility is to assess how a business can achieve its strategic goals.
Businesses require a detailed financial plan that outlines all activities, resources, and objectives within a timeframe.
To craft the plan, a financial planner must analyze the business environment, assess whether the objectives are realistic and feasible, and identify
Due to the costs involved in a business, a financial planner must be thoroughly exact about numbers and know exactly the cost of labor, equipment or materials to set a reliable budget.
Also, he must inform the business owner about associated financial risks.
In business, without rigorous planning and sound risk management, the chances of long-term stability and success are low, so the role of a financial planner is instrumental.
Financial Planning for Individuals
Working with individuals can be a bit more challenging depending on where you’re from.
Some people think that investing and planning for retirement is something they can do on their own, without paying for professional expertise.
However, the knowledge, skills, and experience that a financial planner brings to the table cannot be matched.
Your first task as a financial planner is to earn clients’ trust and show them the multiple ways in which you can assist them.
In general, as a certified financial planner working with individuals, you are likely to educate your clients about investment options, manage their investments and retirement portfolio.
Plan realistic financial goals either in the short-term or long-term and establish straightforward steps to increase their savings or pay their debt.
Overall, your main responsibility is to help individuals take their finances seriously and work with them to identify their blind spots when it comes to financial education.
You are also likely to work regularly with self-employed individuals.
As a financial planner, working with businesses versus individuals somehow comes down to whether you’re a people’s person or prefer working more with numbers and documents.
If your career revolves around providing individuals with assistance, a large part of your success will rest on your ability to find clients and cultivate relationships.
On the other hand, businesses don’t hesitate to pay hefty sums for a good financial planner.
James Mullane says
Lots of good info here, As a financial planner myself, it is essential for novice entrepreneurs to have a financial planner guiding them every step of the way.